Moneycontrol Be a Pro
Get App
Last Updated : Dec 21, 2017 09:00 AM IST | Source: Moneycontrol.com

Nifty likely to face resistance around 10,500; 5 stocks which can give up to 16% return

We expect markets to trade in consolidation until trading below 10,500 levels and consolidation range would be 10,300-10,500 for current expiry.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Rohit Singre

Bonanza Portfolio

The Nifty touched fresh record high level of 10,494 at the opening tick but closed the day with the loss of 19 points at 10,444.20 on Wednesday. The Nifty is trading near strong resistance of 10,500 levels and we may see some profit booking from these levels.

However, if Nifty manages to hold above 10,500 for 1-2 days then we may see more short covering in the index which will take it towards 10,600 levels.

Close

Technically, the index has broken its downtrend channel pattern which is bullish in nature and targets for the same around 10,600 levels. We expect Nifty to hit fresh record highs in the current month if it manages to hold above 10,500 levels or not.

On the options front, highest open interest still stands in 10,000 PE which will act as a strong support in the December series and on the higher side 10,500 CE has the highest open interest which will act as a strong hurdle in series.

Any break above 10,500 levels could see some strong short covering in the index which could push the index towards 10,600 levels. Overall it is a buy on dip market as long as it holds above 10220 levels and any dip need to be bought.

We expect markets to trade in consolidation until trading below 10,500 levels and consolidation range would be 10,300-10,500 for current expiry.

Here is a list of five stocks which can give up to 16% return in short term:

Bata India: BUY | Target Rs 830| Stop Loss Rs 700| Upside 11%

The stock started its recent rally in early July which took Bata India towards Rs830 levels and then we saw some healthy correction up to Rs710 levels which is 38.20% retracement zone from previous low.

On the weekly chart, after making a bottom at Rs400 levels in November 2016, the stock started rallying northward and took a halt at Rs590 zone.

We saw some correction from 590 to 510 which is 38.2% retracement from the support of its previous low. We see history repeating itself and the current chart structure. We expect the stock to start moving towards fresh highs from current levels.

Considering above technical setup, one can initiate buy call on the stock at current levels to any dip near Rs730 for the target of Rs 790 & Rs830 with a stop loss below Rs700 on a closing basis.

Sadbhav Engineering: BUY | Target Rs 410-440 | Stop Loss Rs 350| Upside 16%

The stock has broken from its inverted head and shoulder pattern in late November but it didn’t move too much but showed some sideways moment with correction.

On Wednesday, the stock broke past its immediate resistance above Rs375 and closed above the same with good volume hinting that it is ready to fly higher in the near-term.

At the time of inverted head and shoulder pattern breakout, we have witnessed strong volume activity on the chart which also supports the call.

The momentum traders can initiate a long call on stock at current levels to any dip near 365 for the targets of 410 & 440 with keeping a stop loss below 350 on a closing basis.

Jubilant Life: BUY | Target Rs 780 & 830 | Stop Loss Rs 680| Upside 11%

On Wednesday, the stock closed with more than 5 percent gain and volume activity was also strong on the same day. On the daily chart, the stock has broken its double bottom pattern and also managed to close above its 200-DMA which is a strong positive sign.

On the weekly chart, it seems that the stock is forming a rounding bottom which will complete near Rs840 zone. We expect the current momentum will continue up to 840.

Momentum traders can take a position in the counter at current levels or to any dip near Rs710 for the targets of Rs780 and Rs830. A stop out levels can be kept below Rs680 on a closing basis.

Motilal Oswal: BUY | Target Rs 1520-1600| Stop Loss Rs 1350| Upside 8%

The stock is trading in a super uptrend and we have seen a strong up move in counter in the recent time. If we observe the chart, after every rise, the stock showed some healthy correction and then again continues its overall rally.

Current chart structure is looking the same and this time as well, after a strong rally the stock came to previous breakout levels at 1300 and started showing strength.

We expect the current strength in the stock to extend further and have the ability to take stock towards 1520-1600 levels in short run.

Considering technical setup, traders can accumulate the stock at current levels to any dip near 1410 for the targets of 1520 & 1600 with a stop loss below Rs 1350 on a closing basis.

NIIT Technologies: BUY | Target Rs 680-700| Stop Loss Rs 600| Upside 9%

The stock has given an inverted head and shoulder breakout in the month of October and thereon the stock is trading near and above the breakout zone. The current chart structure says that the stock has taken support at breakout level and ready to bounce quickly.

Immediate hurdle is coming around 650 zone any break above the same level we may see stock to move towards lifetime high. Momentum indicator RSI also turned from downside and currently reading at 55 which is a bullish territory.

Momentum traders can take a position in the counter at current levels to any dip near 620 for the targets of 680 and 700; stop out levels can be kept below 600 on a closing basis.

Disclaimer: The author is Senior Research Analyst, Bonanza Portfolio Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Dec 21, 2017 09:00 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant